The subsidy from the USOF was disbursed in four quarterly instalments during each financial year. Each instalment was paid quarterly in arrears.
Subsidy for a quarter was disbursed after making adjustments, if any, for the payments made in the previous quarter. Final adjustments, if any, in respect of excess or shortage in the subsidy disbursed was made in the following year based on the quarterly statements duly certified by the Auditors of the USP.
In case the total amount disbursed for a financial year based on quarterly self-assessment claims of the USP results in excess payment by more than 10% of the actual subsidy due to him, the entire amount of excess payment was recovered along with interest at the prime lending rate of State Bank of India prevalent on the day the respective disbursement was made.
In cases of faults for more than 7 days in a quarter, the subsidy shall be deducted proportionately for the total number of days VPT remained faulty during the quarter. In cases, however, where the VPTs remain faulty for 45 days or more in a quarter, no subsidy for the entire quarter shall be allowed.
With effect from the quarter ending 30.09.2004, VPTs that remain disconnected on account of non-payment and VPTs that register no incremental meter reading during the entire quarter shall not qualify for any subsidy support for that quarter (vide letter no. 30-101/2002-USF dt 14.09.04).
Claims from QE December 2007 onwards should contain a list of NIMR/Closed/DNP VPTs (vide USO letter no. 1-1/2007-USOF dated 19th November 2007).
Subsidy claims from QE June 2008 onwards should be certified by the concerned GM/DGM (TR) to the effect that information furnished in the claim tallies with the billing record ( vide USO letter no. 1-1/2008-USOF dated 6th May 2008).